I tried making same changes (although compiz config is little different and same options are in different panels) but with no success. I also tried to manually set resolution and refresh rate of HDTV in nvidia settings - no changes at all.

I know that open source drivers would solve a problem but it's not an option because I need VDPAU acceleration.

I've also read that completely disabling of Composite solves the problem - can't do that because compizconfig-settings-manager crashes on attempt.

1 Answer
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Thanks to Barafu Albino I found temporary solution to problem. In my case it's HTPC so I use it only for playing movies. Therefore I can use any desktop enviroment... including XFCE mentioned by Barafu.

sudo apt-get install xubuntu-desktop

This will install Xubuntu deksktop enviroment including XFCE.

Logout from ubuntu. Choose XFCE session

Enjoy tearless playback!

(make sure you've taken steps with vertical synchronisation and refresh rate settings as mentioned in guide)